
Bitcoin Surges as Long-Term Holder Interest Grows
Bitcoin has rebounded to $120,000, fueled by a rise in long-term holders, indicating a strategic approach to investment among those who have held Bitcoin for 18 to 24 months.
For the first time since reaching an all-time high in mid-August, Bitcoin (BTC) has risen to $120,000, boosting market optimism.
However, analyst Avocado_onchain from CryptoQuant highlighted that this surge is not just due to macroeconomic circumstances and ETF inflows; it’s significantly driven by the growing number of long-term holders. This trend indicates a strengthened confidence in Bitcoin’s future.
The Factors Behind the Increase
An increase in the number of investors retaining their Bitcoin for 18 to 24 months suggests a strategic commitment from those who have weathered the previous bear market. Their retention of assets coincides with the anticipated approval of U.S. spot Bitcoin ETFs set to begin in January 2024. This indicates a belief in a shift in market structure and not merely a reaction to necessity.
“If this trend continues, it signals that more investors are not just holding because of past conditions but are deliberately positioning for long-term growth,” wrote Avocado_onchain.
The rally is supported by various macroeconomic and regulatory conditions, including recent U.S. government actions and substantial institutional investments. With nearly $1 billion in inflows from U.S. spot Bitcoin ETFs in late September, this has attracted significant attention from investors.
Market Outlook
Bitcoin’s current trading range of $120,000 to $122,000 is seen as a critical level. Analysts predict that a break past this zone could lead to new record highs, whereas a rejection may see it drop back toward $100,000.
The cryptocurrency has risen 1.3% in the last 24 hours and about 10% in the past week, with a staggering 96% increase year-over-year. Comparisons to gold’s recent performance suggest Bitcoin could be set for another strong month ahead. Predictions of hitting $150,000 by late October or early November are becoming more prevalent, though experts caution that volatility is expected to remain high.